Elm (7203) Q3 2025 earnings summary

Executive summary

• Achieved strong financial growth in the first nine months of 2025, with revenue up 26.1% to SAR 6,657 million and net profit up 23.7% to SAR 1,644 million, driven by expansion across all business segments and the consolidation of Thiqah Company.

• Major acquisition of Thiqah Business Services Company completed in April-May 2025, fully consolidated from April 30, 2025, enhancing access to new sectors and customers.

• Continued operational expansion with new value-added services and successful execution of digital transformation and government projects.

Financial highlights

• Revenue reached SAR 6,657 million, gross profit SAR 2,798 million, EBIT SAR 1,568 million, and net profit SAR 1,644 million for 9M 2025, all showing double-digit growth year-over-year.

• Gross profit margin expanded to 42.0% from 41.5% year-over-year.

• Basic EPS for the nine months was SAR 21.13, up 23.5% year-over-year.

• Cash and cash equivalents at period end were SAR 2,760 million.

• Thiqah contributed SAR 606 million to revenue and SAR 251 million to gross profit for the consolidated period.

Outlook and guidance

• 2025 revenue growth guidance remains at 33%-35%, EBIT margin at 22%-24%, and operating cash flow at 80%-90% of net income, unchanged after Thiqah consolidation.

• Management expects continued value creation for shareholders and partners, supported by operational execution and integration of Thiqah.

• Revised useful lives of assets are expected to reduce annual depreciation and amortization by SAR 38.9 million.